Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

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Effective Date: 06/30/2004, Docket: RP04-321-000, Status: Effective

Original Sheet No. 77 Original Sheet No. 77 : Effective

RATE SCHEDULE PS

PEAKING STORAGE SERVICE

1. AVAILABILITY

This Rate Schedule is available for Natural Gas Storage service

performed by Panhandle Eastern Pipe Line Company, LP (hereinafter

called Panhandle) for any party (hereinafter called Shipper) which

has executed a Storage Agreement in the form prescribed under this

Tariff for service under this Rate Schedule.

2. APPLICABILITY AND CHARACTER OF SERVICE

This Rate Schedule shall apply to Gas made available by Shipper

to Panhandle under firm, interruptible or third party transportation

agreements at the PS Point and nominated for Storage under this Rate

Schedule, subject to the General Terms and Conditions herein and the

further provisions of the Service Agreement. In addition, where

Shipper is utilizing a third party to make Gas available for Storage

under this Rate Schedule, the Shipper may designate as the PS Point

an off-system Market Area Storage Facility that Panhandle has leased

from a third party, subject to operational feasibility, the terms and

conditions applicable to Panhandle's agreement with the third party

providing the off-system storage, the General Terms and Conditions

herein, and the further provisions of the Service Agreement.

The service provided hereunder consists of the injection of

Shipper's Gas into Storage at the PS Point during the Summer Period,

Storage in Panhandle's Market Area Storage Facilities and the

subsequent withdrawal from Storage at the PS Point, during the Winter

Period, all on a firm basis. Injections must be scheduled in

accordance with the schedule set out in the Service Agreement, which

schedule shall be subject to annual revision by Panhandle to reflect

the cycling requirements of Storage available to Panhandle.

Injections during the Month of April may be suspended by Shipper if

the PS Stored Volume does not fall below 17% of the Maximum Stored

Quantity. On any Day during the Summer Period, if the PS Stored

Volume is at or above the monthly scheduled amount, injections may be

suspended by Shipper. The monthly injection schedule will be

supplied to each Shipper prior to the Summer Period injection cycle.

Winter Period injections will be permitted on an interruptible basis,

subject to Panhandle's management of Storage to preserve

deliverability. Maximum Daily Withdrawal Quantities shall be in

accordance with the Service Agreement but, shall not exceed 1/71st of

the Maximum Stored Quantity. Shipper's Maximum Stored Quantity shall

be a uniform quantity throughout the term of the Service Agreement,

except that Panhandle may, but shall not be obligated to, agree on a

not unduly discriminatory basis to certain differing levels in

Shipper's Maximum Stored Quantity for specified periods during the

term of the Service Agreement. The effective period of each Maximum

Stored Quantity level shall be specified in the executed Service

Agreement. Available withdrawal quantities will vary according to

the percentage of Stored Volume to the Maximum Stored Quantity as

follows: